TSO
Elite Member
Free money is never free ... especially in terms of 0% financing.
New vs. Almost New
- Thread starter holzboat
- Start date
Free money is never free ... especially in terms of 0% financing.
Wayne64SS
Silver Member
please elaborate.
TSO
Elite Member
Every time I have seen 0% ... it comes with money built in somewhere. These companies are in business to make money. If they offer 2.9% and expect to bring in an additional $1500 in interest, it's a safe bet that they have $1500 (or close to it) built into the purchase somewhere for 0%.
For example, the 2.9% might come with a rebate that 0% does not have.
Every time I've called a Kubota dealer to ask for pricing on a new tractor, the first thing they ask me is "are you paying cash or financing ?"
In my experience, the only way to truly get 0% is to pay with cash.
For example, the 2.9% might come with a rebate that 0% does not have.
Every time I've called a Kubota dealer to ask for pricing on a new tractor, the first thing they ask me is "are you paying cash or financing ?"
In my experience, the only way to truly get 0% is to pay with cash.
Wayne64SS
Silver Member
I maybe gave up a couple hundred bucks over a cash price. It really depends on whether the place you're buying is in the business of selling tractors, or in the business of getting rich off every sale. Not to mention alot of people can't qualify for 0%.
Gary Fowler
Super Star Member
- Joined
- Jun 23, 2008
- Messages
- 11,998
- Location
- Bismarck Arkansas
- Tractor
- 2009 Kubota RTV 900, 2009 Kubota B26 TLB & 2010 model LS P7010
I got true % financing on my LS purchase but only for 24 months. Most of the 0 down 0% interest for 5 or 6 years has a built in charge in the price to cover some % of the finance charge. Any honest dealers will tell you this also. The free FEL or 0 financing is the same thing, a kind of bait and switch but when you get the total cost for cash figures vs financing there is always a fee in there for the free money.
Except in the rare instance of the exceptional deal, if you buy used and have to finance it, it will cost you more in interest regardless of who you finance with. Used finance rates are higher than new rates in most cases. Sellers of very nearly new almost always want the net loan value or more when selling. When a person buys for 0 down and 6 year payments, one still has nearly new cost in the loan amount outstanding after a year of payments. Boats and motorcycles are the worst of the lot for this and sellers have to take a beating to get rid of them. Tractors can command a bit higher resale value but NOT FOR ME. NO way would I pay within $1-2K or new price for a used tractor.
Except in the rare instance of the exceptional deal, if you buy used and have to finance it, it will cost you more in interest regardless of who you finance with. Used finance rates are higher than new rates in most cases. Sellers of very nearly new almost always want the net loan value or more when selling. When a person buys for 0 down and 6 year payments, one still has nearly new cost in the loan amount outstanding after a year of payments. Boats and motorcycles are the worst of the lot for this and sellers have to take a beating to get rid of them. Tractors can command a bit higher resale value but NOT FOR ME. NO way would I pay within $1-2K or new price for a used tractor.
polarred21
Gold Member
What interest rates are available on used equipment?
polarred21
Gold Member
This is what I'm seeing. Used Kubota BX prices that are high and then the interest rate puts you at a total pay back price of a new one.
Paying cash or financing is the biggest decision maker here.
Yes there is built in cost with "0 for 60" as salesmen commonly speak, but you need to look at the final cost and not the monthly payment.
How many times have you been asked by a car salesman, " how much do you want your payment to be?"
Beltman60
Platinum Member
So you'er saying the used tractors with a couple of hundred hours on them for maybe 4k less than my new 0% financed tractor with a full warranty is really only $2500 less than new?
glad I bought the new
TSO
Elite Member
No, I'm not talking about anybody's particular deal ... Almost all of my vehicle purchases are used, my ZTR was used ... I like buying used IF the deal is worth it.
What I'm saying is that someone here posted buying new with "free money" meaning 0%... and I'm just pointing out, so people understand, that 0% is not "free" money. There's a catch. Even if you, the consumer, aren't aware of it, it's most likely there.
Wayne64SS
Silver Member
I agree, I buy almost everything used and pay cash for all of it, some deals are actually deals.